Monday, December 14, 2009

Times Keep Changing - Deeds

Historically, residential home transactions have been conveyed with a Warranty Deed (or sometimes called a General Warranty Deed). With the amount of foreclosures that have prevailed in the last couple years, Special Warranty Deeds (or sometimes called Limited Warranty Deeds) are becoming more common.

A general warranty deed is a promise to the buyer that the seller will warranty any prior problems with title, not just during the seller's ownership, but back along the chain of ownership. It will warrant that the seller owns the property, has the legal right to convey the property, is conveying clear title except those items specified as exceptions in the deed, promises to obtain whatever is needed to make the title good, guarantees the title is superior to any other, and will defend the title against lawful claims and compensate you for any loss from a title failure. This warranty will go back in the chain of title as well as forward.

A special warranty deed, on the other hand, limits the seller's promise (warranty) to title problems that come up while the seller owned the property, but gives no warranty for problems prior to that point. For instance, foreclosure property is an example where you often see special warranty deeds. Banks have no close relationship to the property and often don't want to promise anything about the condition of title before they acquired the property through foreclosure.

Quit Claim Deeds are another type of deed. They provide the buyer with no warranties and conveys only the interest the seller holds when the deed is delivered. Often this type of deed is used when property is conveyed between family members, for example. Consult with an attorney or someone familiar with property conveying before accepting a Quit Claim Deed for a property you are purchasing.

Title insurance is one way to insure the buyer of many of the issues that may surface after property has been conveyed. It will insure the buyer against past ownership problems, old liens, boundary issues, etc.... There may be exceptions in the title insurance policy, and owners should know what their exceptions are. Title companies won't insure against problems that they make exceptions to, so know what they are. Otherwise, unless they make certain exceptions, other past title issues will be covered. Often, a home is the largest purchase you will make. Make certain you are speaking with people that will guide you through the whole process so you clearly understand all the pieces of this purchase.

We can assist you with building a home, obtaining a loan for either construction or the final purchase of a home. Give us a call at 763-784-3400 or visit our website at for more information.

Thursday, December 10, 2009

Never a Better Time to Buy or Build

In Minneapolis, we just had a blizzard and it’s below zero as I write this; however, it still may be the best time to purchase or build your next home. Interest rates are at all time lows, affordability is at a all time high, and there are numerous willing sellers to accommodate. Considering that the process from offer to closing takes between 60-120 days (especially if you choose to build) your move in date could be in the bright spring sunshine. Contractors Capital offers full service customer service from finding a house or lot to helping you with the building procedures and completing your loan process. Don’t wait, call CCC and ask for one of friendly loan officers at 763-784-3400 or visit our website at